Investors that follow a(n) ____ strategy buy a widely diversified mix of stocks and/or mutual funds,reinvest the dividends,and hold on to those investments almost indefinitely.
A)asset allocation
B)buy-and-hold
C)dollar-cost averaging
D)modern portfolio theory

Question

Quizplus · Accepted Answer

The strategy described is known as the buy-and-hold strategy. It involves buying a diversified portfolio of stocks or mutual funds, reinvesting dividends, and holding the investments for the long term, often indefinitely. This strategy is based on the belief that over the long term, the stock market will trend upward, and that holding a diversified portfolio minimizes risk.

Investors That Follow A(n) ____ Strategy Buy a Widely Diversified